As per the forecast, the primary factors were; (i) asset sales at the end of last year (a New York skyscraper, their Osaki complex and share disposal), (ii) the over expectations performance of the financial services division, (iii) the depreciation of the Yen, and (iv) the non-realisation of further division deterioration (source: http://www.sony.net/SonyInfo/IR/fina...ision_sony.pdf).

To put things into simple perspective that the underlying business is still traumatised; the forecast is for operating income of •230mn ($2.3bn), and net income of •40bn ($400mn); the Osaki building alone was sold for •111bn ($1.2bn), whilst the Madison Avenue property disposal was worth •100bn ($1.1bn); although it should be noted that the booked Ďprofití is lower.

In summary, the asset disposals give the company breathing room, but Sony needs to look at further restructuring, potentially reducing the headcount by 50%, cull several product lines, and potentially hive off the content divisions (pictures and music). It is quite frankly absurd that the financial services segment continues to keep the entire Group afloat.

As per the forecast, the primary factors were; (i) asset sales at the end of last year (a New York skyscraper, their Osaki complex and share disposal), (ii) the over expectations performance of the financial services division, (iii) the depreciation of the Yen, and (iv) the non-realisation of further division deterioration (source: http://www.sony.net/SonyInfo/IR/fina...ision_sony.pdf).

To put things into simple perspective that the underlying business is still traumatised; the forecast is for operating income of •230mn ($2.3bn), and net income of •40bn ($400mn); the Osaki building alone was sold for •111bn ($1.2bn), whilst the Madison Avenue property disposal was worth •100bn ($1.1bn); although it should be noted that the booked ‘profit’ is lower.

In summary, the asset disposals give the company breathing room, but Sony needs to look at further restructuring, potentially reducing the headcount by 50%, cull several product lines, and potentially hive off the content divisions (pictures and music). It is quite frankly absurd that the financial services segment continues to keep the entire Group afloat.

I just think it's funny that the valuation in selling those buildings is a drop in the bucket compared to the forecast profits for the year.

The surest sign that you are on the right side of a debate is when you find yourself against those who are stuck in the past because they have no future.

I just think it's funny that the valuation in selling those buildings is a drop in the bucket compared to the forecast profits for the year.

Without those disposals, it is doubtful that the Group would have been able to provide a profitable forecast, let alone one comparable to international peers like Samsung.

The sale of prime real estate is likely to be the first step towards future disposals to raise cash and further realignment of operations to cut costs. The only way Sony can remain a viable commercial enterprise is by reducing its footprint.

Without those disposals, it is doubtful that the Group would have been able to provide a profitable forecast, let alone one comparable to international peers like Samsung.

The sale of prime real estate is likely to be the first step towards future disposals to raise cash and further realignment of operations to cut costs. The only way Sony can remain a viable commercial enterprise is by reducing its footprint.

I think they would wager on revitalizing the brand, instead. They aren't in such a distressed state that they have to downsize THAT fast.

The surest sign that you are on the right side of a debate is when you find yourself against those who are stuck in the past because they have no future.

I think they would wager on revitalizing the brand, instead. They aren't in such a distressed state that they have to downsize THAT fast.

The business has attempted to reinvigorate the Sony brand ever since the launch of the iPod; it hasnít worked and instead of making drastic decisions to reduce the corporate footprint, the company has been forced into disposing of prime real estate to stay afloat

The underlying concern is that the Sony management believe that no drastic action needs to be undertaken; they erroneously assume that a potential improvement of global fortunes will boost their own. Yet I would argue that the global outlook has become far more opaque what with the standoff in North Korea, the Senkaku Islands, the civil conflict in Syria, Iranís economy silently imploding, the ongoing Eurozone crisis and contagion spreading to France, etc...

In essence Sony needs to become proactive, rather than reactive; the glaring example is why on earth the business is still producing TVís. The business needs to move towards far fewer products which provide substantial margins.

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